Beef Cutout Prices Continue to Decline - Ed Czerwein Gives Weekly RecapMon, 11 Apr 2016 17:54:55 CDT
On a regular basis, Ed Czerwein of the U.S. Department of Agriculture Market News Office in Amarillo, Texas offers a review of the previous week's boxed beef trade. Here is his report of weekly boxed beef trade for the week ending April 9.
The daily spot Choice box beef cutout ended the week last Friday at $214.80, which was $4.31 lower compared to the previous Friday but about $20 lower in the last three weeks. There were 849 loads sold for the week in the daily box beef cutout which was about 13 percent of the total volume. Early grilling season rallies have usually been more dependent on weather to continue, just like we saw in that setback in 2014.
The comprehensive or weekly average choice cutout, which includes all types of sales including the daily spot cutout, was $216.34 which was $3.82 lower. There were 6,508 total loads sold, which was 192 loads higher than the previous week. The formula sales were at 3,144 loads, which was exactly the same as last week and about 48 percent of the total loads sold for the week.
Exports as reported on the box beef report represent primarily muscle cuts and were 736 loads, which was two loads lower. 193 loads were sold to our NAFTA neighbors and 543 loads were shipped overseas.
The out-front sales, which won’t be delivered for at least 22 days, were 1,110 loads which was 29 loads lower than last week.
Taking a look at the weekly average primal cut prices. The Choice chuck and the round primal were both $3 lower. The Choice middle meats - the rib and loin - were $4 to $6 lower this week. Ribs and loins normally do not collapse this time of the year and usually continue to enjoy a seasonal rally, but weather has been a very limiting factor for grilling in many areas this past month.
Fifty percent trimmings, which are the single largest cut from the cutout, jumped $56 the first two weeks in March but lost $39 the past three weeks. However, we quite often see a short rally before the ballpark and grilling season because of sausage and hot dog production, which is a very big supporter of these fattier trimming items.
The daily cow cutout and 90 percent trimming were about steady compared to the previous Friday. The cow cutout was $173.28, and those 90 percent trimmings ended the week at $217.63 on Friday.
The latest report of imported meat passed for entry into the U.S. for week ending April 2, showed that week we passed for import 20,423 metric tons of fresh beef, which was about 500 metric tons higher than the previous week and 6,000 below last year. The year-to-date total tonnage was 12 percent below last year. Australia was down 26 percent and New Zealand was down 11 percent compared to last year, but Canada was up five percent and Mexico was up 14.
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